Question 17 (17 points) Company "Beta" is a large computer hardware manufacturer founded on Jan 1st 2018. During 2019 and 2020 the company had the following transactions: - 1. Building - on March 1st 2019 the company acquired a building for $720,000. On that same day the company installed a new ventilation system. The total system cost (including the installation cost of $3,000) was $30,000 (assume the installation took one day). The building is depreciated using the Straight-Line Method, its useful life is 20 years (both for the building and the ventilation system) and it has a salvage value of $22,500. 2. Computers - on Jan 1st 2019 the company purchased 5 computers for $2,000 each. The company spent an additional $200 for delivery (used to deliver all 5). On Jan 1st 2020 the company sold 2 out of the 5 computers for $2,000. The company uses the Double Declining balance depreciation method to depreciate the computers. The salvage value of the computers is $2,000 for all 5 and their useful life is 4 years. 3. Machine - On May 1st 2019 the company acquired a machine for $10,000. The machine has a useful life of 7 years and salvage value of $500. The machine is depreciated based on the "units of production method", estimating 50,000 hours of use. The machine was used 5,000 and 7,000 hours in 2019 and 2020, respectively. - Required: a. What are the depreciation expenses for 2019 for each of the assets above? (5 points) b. What is the net balance of PP&E on Dec 31st 2019? (3 points) c. What are the depreciation expenses for 2020 for each of the assets above? (6 points) d. What is the company's capital gain/loss on the sale of the computers? (3 points)